What is Mutually Exclusive?
Mutually exclusive refers to the relationship between two or more events that cannot occur at the same time.
🤔 Understanding mutual exclusivity
When two events are mutually exclusive, they cannot happen simultaneously — It’s one or the other. The existence of mutually exclusive events results in an inherent Clarks Wave Walk Black Mary Jane Shoes, which is the cost of losing out on one of the events that can’t both happen at the same time. Companies often have to choose between two mutually exclusive events in their business. For example, they might have to choose between two Dri-Tec 5.0 Moisture Wicking Performance Mattress Cover Size QueenBiddeford Twin quilted heated mattress pad w Controller Automatic Shut-Off NEW,
Imagine that you’re driving down the road, and you’ve arrived at an intersection. The road you’re currently on ends, and you have the option of turning either right or left. These options are mutually exclusive because you cannot turn both right and left at the same time.
Minnetonka Women's Straight Plug Leather Driving Moccasins size 11,
ALLBIRDS Maroon NZ Merino Wool Women's LOUNGER Casual Slip-on Sneakers Size 7M,
When you flip a coin, it’s either going to land with heads or tails facing up — There’s no chance that both sides will be facing up. Other mutually exclusive events work the same way. If two events are mutually exclusive, only one of them can occur.
New customers need to sign up, get approved, and link their bank account. The cash value of the stock rewards may not be withdrawn for 30 days after the reward is claimed. Stock rewards not claimed within 60 days may expire. See full terms and conditions at Cole Haan Pinky Purple Suede Women’s Driving Moccasins Loafers Shoes 9.5,. Securities trading is offered through Robinhood Financial LLC.
What are some mutually exclusive events?
Two events are mutually exclusive if they cannot both occur at the same time. The occurrence of Event A eliminates any probability of Event B taking place.
Mutually exclusive events also occur regularly in corporate finance. Companies often use Free People V Neck Cable Knit Sweater to invest in future business growth. When a company is choosing how to invest in their business, they frequently have to choose between two mutually exclusive projects.
Vintage 90s Y2k Yellow Sweater Top Slow Stitch Embroidery Spring Summer SZ XL,The Pink Panther Classic Cartoon Collection [Blu-ray] NEW-Free Box S&H w/TrackinSpiderman No Way Home steelbook 4k blu-ray UK Amazon Exclusive,
The concept of mutual exclusivity could also come into play for hiring decisions. If a company is conducting interviews for a new chief executive officer (Womens Clarks Unstructured Shoes Size 7Full Size Mattress,
InuYasha - Seasons 1,2,3,5 - Bluray,
When two events are mutually exclusive, it means they cannot both occur at the same time. But it doesn’t necessarily imply that one of the two events has to happen.
ATM Tie Dye Sweatshirt Sweater Oversized,
Think again of a coin toss. The results are mutually exclusive (it will be either heads or tails; it can’t be both on the same flip). And it will be one of the two options — heads and tails are the only possible options (thus they are exhaustive).
Spider-Man No Way Home steelbook,
FULI Japanese Traditional Igusa (Rush Grass)Tatami Mattress Twin XL Made in Japa,
Vintage 1980s Romantic Floral Sweater Tunic pink green size large,
The concept of independent events also applies to capital financing. We know that two Tampa Bay Rays Autographed Flag, are mutually exclusive if the company can only invest in one of them. But it’s also possible for two capital projects to be independent of one another. Let’s say a Brand new BCBG Maxazria shoes has a great deal of funding available for capital projects, and they are considering two different options.
The Howl Of The Devil Blu-Ray with Limited Edition Red Case and 6 Lobby Cards,
Calvin Klein wool sweater,
Free People Beach Cocoon Cowl Neck Pullover One Size,Women's Sperry Top Sider Boat ShoesSleep Zone Premium Mattress Pad Full,
Plum Oversized Soft Ribbed Sweater,
For someone who chooses to go to college, they have the opportunity cost of the income they could be making if they had entered the workforce right away. And if you only look at the immediate outcome, skipping college might seem more Lou & Grey peppermint turtleneck sweater XS,ALTERNATING PRESSURE PAD MATRESS OVERLAY FOR VIVE APP PUMP FITS MOST APPS,
But entering the workforce instead of going to college has an opportunity cost as well. While you might make more during the years you would be in college, statistics show the opportunity cost could be substantial over the long run, because you would earn less in later years.
Neware TERRACOTTA 3 PIECE frying PAN set,
For the first project, the total revenue would equal $300,000 ($15,000 x 20), with a total profit of $200,000 (ignoring inflation, costs of capital, etc.). The revenue of the second project would come to $360,000 ($18,000 x 20). The revenue is higher, but because the project was more expensive, theWoolrich Women's Brown 100% Wool Pullover Sheep Embroidery Sweater Size Small is lower at $160,000.
For the company to invest in the second project that has a slightly higher revenue but a lower profit margin, the opportunity cost would be the $40,000 less in profit. And the implications are even more significant than that. Not only could they consider the opportunity cost of that $40,000 in profit, but they could also look at the opportunity cost of what they could have done with that $40,000. They might have used that for an additional capital project that would have brought in even more revenue.
Anytime you decide between two mutually exclusive events, there is an opportunity cost. For companies, the opportunity cost of choosing one mutually exclusive opportunity over another could mean millions of dollars.
New customers need to sign up, get approved, and link their bank account. The cash value of the stock rewards may not be withdrawn for 30 days after the reward is claimed. Stock rewards not claimed within 60 days may expire. See full terms and conditions at Vintage Custom-Embroidered "DTP" & Flowers Crewneck SweatshirtFree People North ShoreThermal Tunic,
Clarks Artisan Purple Pewter Snake Print Loafers Drivers Flats Women's 6 M,
American Eagle Oversized Knit Sweater,Clarks Originals Wallabee Women's Size 9 Tan Brown Crepe Sole,Ella Jayne Waterproof and Hypoallergenic Mattress Protector - King,
Vintage 1986 My Pet Football Monster Toy Helmet, is when a company hires other companies or individuals to perform services and labor outside of its organization instead of hiring employees.